Logset Oy (Logset) was a privately held, specialized forest-machine manufacturing firm in Koivulahti, Finland. The firm had a strong presence in Europe but not in North America. Canada, with 42 per cent of its land mass covered by forest, was an appealing market, although 15 years of effort had not resulted in any appreciable increase in sales there. Logset had a strong dealer network in Ontario and Quebec. However, efforts to recruit a dealer for Atlantic and Western Canada had been unsuccessful. What strategy should Logset use to enter into partnerships with Canadian companies?

Learning Objective:

This case highlights the challenges of exporting as an approach to internationalization in an industry where there is little to differentiate one supplier from another. It is suitable for undergraduate and graduate courses in strategy, including classes on firm-level strategy, exporting as an entry strategy, and the liability of smallness. After completing the case, students should be able to do the following:

Understand the concept of sustainable competitive advantage using the Diamond-E model of strategic analysis and the “valuable, rare, inimitable, and organized to exploit” (VRIO) model of sustainable competitive advantage.

Appreciate the importance of differentiation in competitive positioning.